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Office rents skyrocketing as firms pour into Jakarta

Aggressive corporate expansion helped push up rents for office space in the Indonesian capital at the fastest pace in the Asia-Pacific last quarter, a property consultant says.

Jakarta saw the strongest increase in average rents in the region, up 7.9 percent in the first quarter from the fourth quarter of 2011, caused by the "rapid expansion of tenants capitalising on domestic economic growth," Jones Lang LaSalle said in a report released on Friday. Todd Lauchlan, country head for Jones Lang LaSalle Indonesia, said demand in the Jakarta office market, both in the central business district and in non-CBD areas, continued to be robust in the first quarter.

Of 27 cities surveyed in the Asia-Pacific region for the January-March period, 13 cities, including Jakarta, showed growth in rent from the previous quarter, while 11 cities saw declines and prices were stagnant in three. Beijing followed Jakarta with a 5.3 percent increase in average rents.

(Source: Jakarta Globe)